Community banks looking much more healthy now

Monday

Jul 23, 2012 at 12:01 AM

John Hielscher

Four of the region's community banks posted improved profits in the second quarter, continuing a trend of renewed strength by the local banking industry.

Earnings at 1st Manatee Bank, C1 Bank, Englewood Bank & Trust and Florida Shores Bank-Southwest all gained over last year. They were the only banks based in Sarasota, Manatee or Charlotte counties that had filed their second-quarter reports as of July 20.

The reports stand in contrast to those coming out of the region's community banks three years ago, when they were being hammered by the Great Recession.

Nine of the banks have failed since October 2008, although Sunday marked the one-year anniversary of the last local failure, Sarasota's LandMark Bank of Florida.

Most of the 12 survivors struggled to earn money as loans turned sour and real estate values plunged during the protracted downturn. And while some banks are still grappling with bad loans and real estate they took over from borrowers, most appear to have recovered from the worst.

1st Manatee, based in Parrish, reported a second-quarter profit of $140,000, up from $92,000 last year.

The bank has earned $367,000 so far this year, more than double the $165,000 profit at this point in 2011. It closed the quarter with $91.6 million in assets.

C1, the Lakewood Ranch bank formerly known as Community Bank & Co., earned a record $2.17 million in the second quarter, up from $2.01 million a year earlier.

Once one of the region's weaker banks, C1 has now been profitable for nine straight quarters. An investor group purchased the bank in 2009, shored up its capital and has since acquired two other banks, most recently The Palm Bank of Tampa in June.

C1, the largest local bank with $925 million in assets, plans to move its corporate headquarters from Lakewood Ranch to the Tampa Bay Times building later this summer. The bank has focused on growing to the north under its new ownership.

Last week the bank added Neil Grossman to its board of directors. Grossman, a St. Petersburg resident, has worked for JPMorgan Chase and Norges Bank, the central bank of Norway.

Englewood Bank swung to a $402,000 profit in the recent quarter, from a loss of $191,000 last year in the same period.

The bank has earned $641,000 so far this year, compared with a loss of $538,000 last year. It closed the quarter at $186.7 million in assets.

Venice-based Florida Shores put up a $455,000 profit for the quarter, up from $280,000 a year ago.

Mid-year earnings came to $585,000, ahead of last year's $529,000.

Florida Shores is one of the region's fastest-growing banks. Opened in November 2007, it now stands at $348 million in assets, bigger than other community banks that have been in business for years longer.

All four of the banks are considered well capitalized by regulators.

The remaining eight community banks must file their call reports with the Federal Deposit Insurance Corp. by the end of the month.

Drought disaster loans

Local businesses that suffered financial losses from this year's drought may be eligible for disaster loans from the U.S. Small Business Administration.

The SBA included all 67 Florida counties in its disaster declaration, opening up economic injury loans to small businesses, small agricultural cooperatives and most private non-profit organizations.

Farmers and ranchers are not eligible, however, except for aquacultural enterprises.

Loans of up to $2 million are available with interest rates at 3 percent for nonprofits, and 4 percent for small businesses. Loan terms run up to 30 years.

The SBA determines eligibility based on the size of the business, type of activity and its financial resources. Working capital loans may be used to pay debt, payrolls, accounts payable and other bills that could have been paid if the disaster had not occurred.

Applications are accepted on the agency's website, www.sba.gov.

Contact John Hielscher at 361-4875, fax to 361-4880 or email john.hielscher@ heraldtribune.com.